Virgin Money continued to attract new customers in the first quarter as the challenger bank said it expects to benefit from higher interest rates for the remainder of the year.

About 27,000 personal current accounts opened in the period, 44% more than last year. The company said this was “a strong performance in a competitive environment”.

It also opened around 9,000 business current accounts, up 92% year-on-year, growing accounts on a net basis for the thirteenth consecutive month. 

Business lending was up 2.4% while the net interest margin increased three basis points. 

David Duffy, chief executive of the Glasgow and Newcastle based bank, said: “We’ve had a positive first quarter with continued good progress on digitisation and growth in lending across the business.

“Arrears remain broadly stable but we’ve increased the support available to those who need it and remain prudently provisioned for an uncertain economic outlook.

“Looking ahead, we have good financial momentum and a number of exciting digital product launches to come which will support our continued growth”

Shares closed down 2.50p (1.30%) at 191p.